Kenya, Uganda hold talks on Eldoret-Kampala oil pipeline project

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Kenya, Uganda hold talks on Eldoret-Kampala oil pipeline project

The governments of Kenya and Uganda have kicked off discussions over the Eldoret-Kampala oil pipeline project.

The talks were commenced between Uganda’s Minister of Energy and Mineral Development, Ruth Ssentamu, with Kenya’s Ministry of Energy officials, led by State Department for Petroleum PS. Mohammed Liban, and toured Kenya Pipeline Company (KPC) headquarters.

The discussions focused on planning and preparing for the project, and understanding Kenya Pipeline’s operations, infrastructure, and human capacity. KPC Managing Director Joe Sang emphasized that extending the pipeline to Uganda is a strategic move for Kenya to regain its competitive edge in the petroleum export market, especially considering Uganda’s new importation strategy.

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Eldoret-Kampala oil pipeline project

Kenya is expected to build a line from Eldoret to Malaba (Kenya-Uganda border), while Uganda will handle the connection from Malaba to Kampala. Future expansions to Kigali, Rwanda are also under consideration.

This initiative follows Uganda’s recent shift to independent fuel imports, which started in early July, ending its dependence on Kenya for refined petroleum products. Under a new agreement between the Uganda National Oil Corporation (UNOC) and Vitol Bahrain, Uganda aims to secure more competitive fuel prices while still using Kenya’s Port of Mombasa and KPC’s infrastructure for transportation to the Western Kenya depots of Eldoret and Kisumu.

The pipeline concept was first proposed in 1995 through a Memorandum of Understanding between Uganda and Kenya and was revisited in May 2024 after a European Investment Bank-funded feasibility study confirmed its viability. In May, President William Ruto hosted Ugandan President Yoweri Museveni in Nairobi, where they agreed that their respective Ministers would take urgent measures to mobilize resources for this shared regional infrastructure project, with progress reports due by the end of 2024.